AMS Webminar July 7, 2021

AMS Webminar
To the next AMS Generation
© 2021 DXC Technology

© 2021 DXC
Company.
Technology
All rights
Company.
reserved
All rights reserved.
Author: Miguel Marroyo July 8, 2021 1
Agenda
AMS Webminar Speaker

Session 1
AMS Introduction Miguel Marroyo
AMS Trends Miguel Marroyo
Invest and innovate in AMS Miguel Marroyo
Govern, organize and transform AMS Miguel Marroyo
Session 2
Main AMS ITIL Proceses Miguel Marroyo
Metrics: why and for what we must measure processes? Miguel Marroyo
KPIs: keeps the lights on and continuous improvement in a high quality AMS Miguel Marroyo
© 2021 DXC Technology Company. All rights reserved. Author: Miguel Marroyo July 8, 2021 2
AMS Webminar
Session 1
✓ AMS introduction
✓ AMS Trends
✓ Invest and innovate in AMS
✓ Govern, organize and transform AMS
© 2021 DXC Technology Company. All rights reserved.

AMS Application Maintenance Service
Application support and maintenance

services are aimed at ensuring that
applications are highly available, reliable
and stay relevant to current business
needs.
A typical large enterprise today spends up to

80% of their IT budget on maintenance and
support of their existing systems. This leaves
only 20% of the budget for new innovations
and strategic projects.
Evolution to the next generation of apps management
Transformative, outcome-based services

Application management for the new style of business
To be more efficient To be more relevant
Enhanced automation Speed up innovation

Industrialization Preventive maintenance Industry-specific Insight
Predictive analytics Business-process insight
Knowledge management Actionable dashboards
Automated testing Outcome-linked
Data cleansing Informed mindset
Minimizing human involvement Focusing human

to gain efficiency involvement on outcomes
Customer Challenges
Budget being squeezed Budget demands are constantly growing
RUN the business CHANGE the business
Budget challenges given Complex transformation

impacted global market required to modernize apps
conditions
Optimize Run to Fund
Large portfolio & complex Change Rapid demand from
applications draining the business to optimize
budget customer facing apps
High cost of automating Competitiveness dependent

ops for maintenance of on accelerating
apps innovation
Proprietary technologies Capacity to meet demand

are expensive to support and for change is increasingly
replace challenging
SAP Business Model Canvas
AMS Value Proposition
AMS Trends
Applications Management Services Market

Trends
AMS Trends – Customers Perspective
Market Services
Application Modernization Application Security Competitive scenario
▪ Cloud application migration ▪ WEB application security
▪ Mobile application ▪ New Services launches
▪ Application Integration
security ▪ Business Expansions
▪ Application re-platforming
▪ User interface modernization ▪ Merge and acquisitions
▪ RPA (Robotic Process Automation)
Application maintenance
and support ▪ Agreement, partnerships,
• Avoid repetitive and manual
tasks. i.e.: fulfill forms, open and collaborations
emails, extract and prepared
information, get information
Application managed ▪ Contracts
from web sites, logon in service
different systems, etc.
▪ AI (Machine Learning)
Trends
Trend #1: Growing Trend #2: Teams Shifting Trend #3: Continued
Application Complexity Away From Legacy Outsourcing of Repeatable
Will Drive AMS Adoption Application Support Tasks For Scalability
Growth ▪ First, companies can leverage it ▪ Service providers continue to assume
▪ Older legacy orphaned by their team's knowledge to build their these types of regular application
creators future replacement applications that support tasks.
much more easily aligns with
▪ Current apps are always evolving ▪ These day-to-day tasks such as
organizational goals.
deploying patches and upgrades,
▪ Complexity rises as grow ▪ Second, moving teams away from monitoring, and utilization resource
enterprise´s business legacy support roles and onto new management are critical for keeping
projects creates expanded career apps running properly.
path opportunities for internal
▪ Outsourcing these repeatable, day-to-
employees and improve employee
day tasks gives the flexibility to scale
retention rates.
your business operations as needed.
Trends

Cost reduction, a Public
constant organizations
approaching AM
companion
Digitization
Automation
affecting AM
making progress
environments
Pricing models Global sourcing gaining

broader accept
beginning to vary
Analytics Manufacturing 2.0
Trends
Garner, trends 2021
Invest and innovate in AMS

AMS spending
Transforming operations through up Agile and Hyper-automation
AMS has evolved from cost cutter to transformation partner

• The AMS outsourcing is moving away from tactical efficiency gains to providing strategic capabilities for transformation
and innovation.
AMS gets agile
▪ Applications are moving to the cloud.

▪ Continuously and quickly deliver iterative releases of multiple applications that delight end users and advance business.
AMS gets intelligent & automated

▪ Intensive monitoring and maintenance, which can be difficult in the complex IT environments that are now typical of
many organizations
▪ Real-time, holistic insight across the data center, forecasting and anomaly detection, and predictive analytics —
coupled with automated actions — are all necessary to remain competitive in the digital economy.
▪ AMS teams need to avoid duplicate effort and finger pointing, and instead focus on optimizing allocation, anticipating
incidents, and shifting from a reactive approach to a proactive approach.
AMS Spending
Spending on application management

services (AMS) is on the rise.
Grand View Research valued the global

AMS market at $52.99 billion in 2015 and
forecasts it to reach $86.60 billion by 2025.
According to Technavio, the global AMS

market reached $83.16 billion in 2016 and
will experience CAGR of 4.75% to reach
$105.02 billion by 2021.
AMS spending
Gartner predicts, IT service desks utilizing machine-learning-enhanced technologies and AI will free up to
30% of support capacity. And within ten years, virtually every application – be it ERP, CRM, BI and
more – will incorporate some form of AI.
Digital Transformation – Key Facts
Six Key Enterprise Applications Trends
“Cloudification”
Market situation: Cloud maturity in various countries –
Share of cloud services in total IT spending
Spain
The Cloud Market in Spain will virtually triple its
turnover for 2023; it will reach 2,800 million
euros for that year.
❖ Areas of IAAS (Infrastructure as Service)

❖ PAAS (Platform as a Service).
Source IDC
Govern, organize and
transform AMS
Applications Management Service

The three type of service deals
Business Business performance
Value improvement focused
Innovation Projects
Operations performance Transformation ✓ Agile
improvement focused ✓ CLOUD
✓ Analytics
✓ Automation
✓ Machine Learning, AI
Enhancement
Cost improvement
focused ADS
IT Modernization
Efficiency
AMS
Relationship Complexity
DXC POV on Application Management Maturity
DXC’s helps clients with clear steps to mature their applications approach to best of breed
Site reliability
engineering
AI used for operational

Market Integrated DevOps efficiencies
operating model
leadership
Managed High pace of application
change
Client Business Value
services Customer experience measured &

Client process & managed
IT SLAs
management Zero production failures
Dev to Ops ratio with A/B deploys
Staff Augmentation Starting to is optimized
Investing in adopt DevOps Highly automated software
Ticket volumes delivery pipeline
growth declining
Waterfall delivery Ticket volumes under
models control Rationalized portfolio
Matured with significant cloud &
automation platform adoption
High ticket Automation being
volumes adopted
Modernization of
portfolio underway
Lack of automation
Delivers cost Occasional projects to
savings
move apps to
supported versions 4 Leading
Large numbers of
legacy and out of
support apps 3 Matured
2 Managed
Drain on
resources 1 Ad Hoc
Application Management Maturity

DXC Service Options
Regular AM Service
What’s this for:
Regular
Agile
✓ Application Run focused managed service Service Features
✓ Provided for general management of an application portfolio where the
application management services are separated from the development services. Leveraged off-shore delivery model ● ○
✓ Provided to deliver a high quality low risk and cost effective service. Ops automation using Application Service
Automation ● ●
Provides customer experience monitoring ○ ●
Agile AM Service
What’s this for:
Provides DevOps tooling ○ ●
✓ Combined managed service for Run, Enhance & Transform Provides dev & ops delivery capacity ○ ●
✓ Provided where applications are undergoing rapid change with continuous
integration and delivery and application management & development are Targeted for cloud native apps ○ ●
combined
✓ Provided from an agile delivery team with for higher levels of customer
Collaborative agile on-shore delivery model ●
collaboration
✓ Provide application transformation services enabling clients to transform service
Embeds proactive ops automation into build ●
delivery, business alignment and technology transformation
Incremental Transformation ●
Delivery models
On site-nearshore –
On site-offshore model
Pure onsite model Pure offshore model offshore
Leveraged offshore
Dedicated on-site Complete delivery Leveraged near-offshore
consultants with on-site
consultant happens from offshore consultants with on-site
consultant
consultant
• Face-to-face interaction with • Providing technical and • Direct interaction with • Better time zone coverage
Customers operational support customer & smooth • Optimal mix of resources from
• Quick response and high • Benefits of DXC Global coordination of offshore nearshore and offshore to get
productivity processes resources best benefits in terms of cost,
• Direct interaction with the • High-cost benefit, effective • Advantages of DXC Global language and capability
Customers utilization of resources delivery processes requirements.
• Speedy resolution of issues • 100% labor arbitrage benefit • Good for increasing • Proximity to the onsite
development capacity of the manager
• Ensure on time delivery and • Provide services to customers
customer team over a stated
support under a Build
period
• Operate-Transfer contract
• Great cost benefit and
effective utilization
• Offshore communication
managed by DXC
Flexible and scalable delivery models
AMS Operational Chart
Planned Lead Responsibilities Service Manager Responsibilities UnPlanned Lead Responsibilities
▪ AD PMO Collaboration ▪ Manage Service Operations ▪ AM Lead
▪ AD KPIs ▪ Control Tower KPIs & Metrics ▪ AM KPIs & Metrics
▪ AD Best shore Relationship ▪ Manage the Tower Team ▪ AM Best shore Relationship
▪ Customer Relationship Management ▪ Manage Business and Functional areas ▪ Customer Relationship Management
▪ Scope: Minor & Mayor Enhancements, ▪ Users' relationship ▪ Scope: Incidents Resolution and Users Support
and Projects development
AMS
Service Manager
Application Development Application Maintenance

PLANNED Lead UNPLANNED Lead
Team Activities Activities Team

• Demand Manager • Incident Manager
Application Functional • Call Handling Agent Level 1
• Change Manager Incident Management
Support
• Project Leader Adaptive Maintenance • Support Operator Level 2
• Solution Content SME** • Rapid Response Team (P1)
Problem Management Access Management
• Build Coordinator Perfective Maintenance
• Build Developer Application • Problem Manager
Regulatory Maintenance • Technical Capacity Lead
• Programmer Analyst Minor Upgrades Operations
Management Service Continuity Plan • Technical Configuration Lead
• Technical Problem Lead
Minor Enhancements Testing •
AutoDetect Technical Automation Lead
Service Continuity Plan • L3 Support Specialist
Major Enhancements AutoResolve Execution & Validation
Communication Plan
Main propose Frecuence Objectives
Strategic & Tactical
▪ Executive follow up ▪ Service status review

AM Annual
Committee On Demand ▪ Strategic decisions approval
▪ Strategic or tactical actions review ▪ Service status review

AM Tactical Quarter
Meeting ▪ Tactical decisions approval
▪ Retrospectives Bi-weekly ▪ Sprint Review
▪ Service status review ▪ Bi-weekly ▪ Review of the service; high & low lights
Operations
▪ Metrics & KPIs supervision ▪ Metrics review
Meeting
▪ KPIs trend analysis
Operations
▪ Demand Management Bi-weekly ▪ Planificar la demanda y alinearla con la capacidad

▪ Decisiones tácticas y/o estratégicas
SKRUMBAN
▪ Impediments Management Daily ▪ Everyday impediments or blockages management
SKRUMBAN
Agile for AMS

Main Goals
We have many challenges ahead but first we should define the main strategic goals
01 Single Service Government
A Single Government to achieve an Overall Operations

03 Leveraged Service Model
We need to be competitive through a Leveraged Resources

Supervision, a cross-Team Management, a unified Customer Model, catching up the particularities and business processes of
Relationship Management, and common Reports, Metrics and our clients.
KPIs.
02 4
There are
Service Transformation
dimensions: persons, processes, technology and

04 Cultural Change
To adopt an agile and collaborative culture, and transform

organization culture. A transformation plan focus its activities on services require a cultural change management and an effective
those dimensions, exactly in that order. communication plan.
29
Agile Transformation Plan
Roadmap
Continous
Scope & Transfroamtion Plan Transition
Improvement
Analyze the Client Culture Define the project
and the Service
Organization
✓ Scope
Define the Scope and the ✓ Initiatives
Success Factors
✓ Deliverables
Asses the current ✓ Metrics Continous
Processes Maturity and Operations
✓ Communicati Plan First Sprint
Metrics Execution Planning KPIs
on
Tools Management
Assessment
1 Up to 3 months 1 up to 2 months 3 up to 6 months

Timeline
SKRUMBAN Our model, a Scrum & Kanban fusion
► Agility refers to flexibility, cultural change and simplicity
Agile practices SCRUM KanBAN

Pace Sprint Continous Flow
Deliverables At the end of the Sprint Continous Delivery
Product Owner
Functions Scrum Master No role prescription
Team
Lead time
Key metrics Velocity Process Time
Work in process
Cultural change Changes are welcome No changes during the Sprint
► Lead Time: time between the ticket is created until is delivered into production and closed
► Process Time: time of development
KANBAN Development Cycle
Product Backlog Sprint 2 Weeks
Analysis Build Tests Deploy Close
Analyze the Develop the Do the users Deploy into ▪ Verify if

functional enhancements tests production functional
requirements of the and do the when users' changes
enhancements unitary tests tests are over are working Applications
Report and
Development Development repair defects
included in the properly Services
Sprint ▪ Report and
repair
defects
Enhancement ▪ Close the
ticket
Impediments Backlog
Transformation Operational Goals
Operational Goals KPI Target Result Status
Velocity Continous
A stable pace of delivery (Number of user stories (enhancements)
delivered in each Sprint) Improvement
Flow Efficiency
Reduce the Lead Time Process Time / Lead Time >=80%
Efficiency Factor (%)

(Number of user stories (enhancements)
Increase the productivity accepted in each Sprint) >=80%
Reduce defects & Improve Defects Density

(% of hours dedicated to repair defects / <=10%
Quality Total hours of the Sprint)
Agile Benefits
Targets Benefits
Reduce the maintenance cost
✓ Modular and adaptable service Up to
Cost
Efficiency
✓
✓
Standardized delivery models
Automation of manual jobs
30%
Cost reduction
✓ Reduction of the number of incidents year after year
✓ Foster a Delivery Near-Shore Center
Accelerate the go to production

Agility ✓ Work in progress reduction Shorten the
✓ Development Cycle (Lead Time) reduction Delivery time
✓ Continuous adequacy to business priorities up
✓
Productivity
✓
Number of defects (up to 25%) reduction
Improvement of productivity (up to 30%)
60%
Improve Service Quality and Perception
✓ Managed service based on best market practices
User ✓ Robust transition model with focus on risk management User
Experience ✓ Incidental impact reduction Satisfaction
✓ User Active Party (Agile Model)
✓ Emphasis on flexibility and commitment 99%
✓ Impulse of innovation and transformation
Target
Reduce the life cycle and development of the enhancements and find the appropriate delivery
How we speed aligned with the requirements of the Business Units and IT capacity.
enhance at Solution
Implementation of SKRUMBAN as a method of work. For this we have defined a lot size of
speed about 30 hours of average and a 2-week sprint. Jira as a control tool, tracking and
visualization of Kanban.
Results
Transformation of the Enhancements Development Process in IMI Gerencia de Recursos, an AMS
for Barcelona City Council using SKRUMBAN as a reference Agile practice.
Client:
Goals Client Benefits

► Get a stable development pace to deploy ► Currently an average of 15 enhancements
into production
are delivered a month systematically
► Reduce the Lead Time: Time since the
enhancement is created until it is put into ► Lead Time from 7 months to 2 months on
production average
► Improve the development
DXC cycle
Proprietary and Confidential ► Development cycle from months to 2 weeks
► Reduce the work in progress ► 25% of productivity improvement35
► Reduce defects
Target
How we Reduce the life cycle and development of the enhancements and find the appropriate delivery
speed aligned with the requirements of the Business Units and IT capacity.
enhance at Solution
speed Implementation of SKRUMBAN as a method of work. For this we have defined a lot size of
about 30 hours of average and a 2-week sprint. Jira as a control tool, tracking and
visualization of Kanban.
Resultados
Transformation of the Enhancements Development Process in Madrileña Red de Gas using
SKRUMBAN as a reference Agile practice.
Client:
Goals Client Benefits

► Get a stable development pace to deploy into ► Currently an average of 14 enhancements are
production delivered monthly systematically
► Reduce the Lead Time: Time since the ► Lead Time from 12 months to 2 months on
enhancement is created until it is put into average
production
► Development cycle from months to 2 weeks
► Improve the development cycle
► Work in progress from 40 ongoing enhancement
► Reduce theDXC Proprietary
work and Confidential
in progress
and 10 delivered on average, to 14 developed
► Reduce defects and delivered on average
36
► 30% of productivity improvement

Transformative business outcomes
Agile Delivery
How we Rearrange and prioritize the backlog for 3 major hospital centers in Portugal regarding application
enhance at maintenance and corrective development, all this also considering change requests and incident
management.
speed Solution
SCRUM implementation with a specific allocation for incident management and sprints of 2
weeks.
Customer Experience Improvement
This solution allowed us to improve our work distributions across all our customers while reducing
our release time across all instances.
Case Study:
Business need Client Outcome

► Assuring that all customers have their ► Currently, an average of 10 Enhancements per
change requests delivered in a timely month are delivered systematically.
manner.
► The development cycle has gone from months
► Reduce Lead Time: time from when the to 2 weeks.
Enhancement is created until it is put into
► The work in progress 37 has gone from a Waterfall
production.
methodology with no correlation between the 3
► Reduce work in progress. customers to a common Backlog with a
► Improve the backlog for the team. prioritized list of items worked and delivered per
sprint.
► Assuring that all incidents/tickets are
addressed within the agreed SLA. ► Adjusting the allocation for the team all the
SLA's are assured within the sprint.
iAOps for SAP
Service Automation

DXC Service Automation
Service, Automation,
DXC autoManage APIs, Monitoring
AWS
CLIENT RedShift
QUICKSIGHT
ONPREMISE
APPLICATIONS Service Management Development Management ChatOps Advanced Analytics
Incidents Management & RCA API Service health APIs
Source
Change events API Workflow requests Code
CLIENT MANAGED OPERATIONS

SYSTEMS APPS ORCHESTRATION
Full Stack AI Powered
Performance Monitoring Source Code Analysis
Tickets Resolution Automation
Metrics
Platform ANALYZER
Metrics
DXC autoDetect DXC autoResolve DXC autoImprove
Service Automation
DXC includes automation as part of the AMS service
autoDetect autoResolve
Automated System Monitoring Autom. Incident/Serv.Request Mgmt.
Automated Application Monitoring Automated Incident Resolution
Auto-generated Incidents Automated Service Request Fulfillment
IT Operating Model Business Operating

autoManage KPIs Model KPIs
Enabled by
Use Case: Sales Order Transaction
Manually
Service
monitoring End user Level 1.5 Resolutor Service
desk
desk
Fails in Frustrated user Create the ticket Classifies the incident, Apply correction Validates with the user
identifying an finally calls the manually collects data manually for that the incident has
incidence service desk analysis been resolved. Close
the ticket
DXC autoDetect DXC autoManage DXC autoResolve ► Up to 40% reduction in efforts

• Failure detected • Identified resolution Ticket ► No rework; ideal resolution every time
automatically • Procedure executed automatically ► Greater customer satisfaction
• Incident registered resolved
automatically ► Minimum interruption of service
AMS Webminar
Session 2
✓ Main AMS ITIL Processes
✓ Metrics: why and for what we must measure
processes?
✓ KPIs: keeps the lights on and continuous
improvement in a high quality AMS

Main AMS ITIL Processes

IT4IT Proceses Map
Strategy to Portfolio Requirements to Deploy Request to Fulfill Detect to Correct
Strategy & Goals Agile Requirements Service Design Service Catalog Incident
Event Management
Management Mgmt. Coordination Management Management
Business Service Transition Service Develop, Service Request Problem

Service Monitoring
Relationship Mgmt Planning & Support Integrate & Test Fulfillment Management
Demand Service Validation & Knowledge

Change Management
Management Testing Management
Service Portfolio Service Level IT Service

Defect Management Release & Deployment Mgmt Performance Mgmt
Management Management
Demand Management
Work Request: Change Request, Project Idea, Operational Request …
IT Demand Management feedback loop
Products
Planned & Unplanned IT Value Stream
Demand Management Cycle Backlog
1. Demand Planning Operations IT Value Stream
2. Capacity Planning Push Pull
Projects Pull
3. Balancing Kaizen Participation IT Value Stream
4. Strategic Review
IT Value Stream Customers
Matching prioritized Clear priorities aligned with Delivery commitments based on
demand with available business objectives available capacity flow in small
capacity
increments to the customer
Work Request Management
Demand Management
Three choices when demand exceeds capacity
Do nothing: the most common practice. Live with the

1 frustration while the situation worsens. Priorities are set by
command and results are poor and misaligned.
Add capacity: expensive and a short-term solution and use to
2 increase waste and costs, hiding real problems.
Balance demand a capacity with a rigorous process is the
3 only operational excellence option.
Demand Management Process
Tools
✓ Easyvista - JIRA
✓ ZSAU 80% => JIRA Channels
✓ JIRA
Viability Analysis Requirement ✓ HPSM -> JIRA ✓ Telephone
▪ You need to contact the user to understand the requirement ✓ Mail
▪ There are simple and other more complex issues ✓ Mailboxes
▪ You have to investigate sometimes to clarify requirements ✓ Tools
✓ Meetings
✓ Other projects
Processes
Delivery
Demand Cycle Sprint or Incident Process

Incidents
1. Demand Planning Iteration Service Request
2. Capacity Planning Support Process
Enhancements
3. Demand/Capacity Balance
4. Strategic Review Development Process
Users
✓ Analyze viability ✓ Speed and flexibility in the delivery
✓ Solution of incidents and supports
✓ Prioritize demand of services aligned with the needs
✓ Functional analysis of the enhancements to ✓ Development of enhancements
aligned with business needs of the business.
plan in the next iteration
✓ Auto-manage the iteration
✓ Balance iteration / capacity Products / Applications
Unplanned Work: Corrective & Support Process (RUN)
Level interaction Flow
Service Desk Analyse Build Deploy

Level 1.5
User
Solution
Service Validation
OK
Request
NO
SI Incident Closing
KO OK Solution analysis
Quality
Develop
Take the incident
Assign a Resolution
Level 2
Group
Knowledge
map Solution thinking Unitary tests
Assign a person
Solution
validation Deployment
Dependencies
management
Level 3
Problem?
SI
Problem Management
Planned work: Enhancements Development Process (CHANGE)
Product owner
ANALYSIS & PLAN
Effort Validation
Solution Validation
Requirement Analysis
Functional
Requirement Estimations Work Planning
Design
Dependencies
Users
Design Validation User Support

Users Tests
BUILD
Technical
Working in process
Design
Validate & Accept Users Tests

User Support
DEPLOY
Production
Closing
Deployment
Register defects
Impact Analysis
Repair Defects
Análisis ITIL
Maturity Level Current Maturity Maturity Level Current Maturity

Incident Management Support Management
Maximum Value Level Maximum Value Level
Level 1: Previous requirements 5 5.0
Level 1: Process 5 3.8
Level 2: Process Planning 5 2.5
Level 2: way to work 5 3.3
Level 3: Process 5 4.4
Level 4: Other Processes Relationship 5 3.3
Level 4: Other Processes Relationship 5 4.0
Level 5: Deliverables 5 5.0 Level 4 : Tools 5 3.0
Level 6: Quality Control 5 5.0 Level 5: Catalog 5 2.0
Level 7: Metrics 5 3.8 Level 6: Metrics 5 5.0
Level 8: Client Satisfaction 5 1.3 Level 8: Client Satisfaction 5 1.3
Análisis ITIL
Maturity Level Current Maturity Maturity Level Current Maturity

Change Management Problem Management
Maximum Value Level Maximum Value Level
Level 1: Previous requirements 5 5.0 Level 1: Previous requirements 5 3.8
Level 2: Process Planning 5 3.3 Level 2: Process Planning 5 5.0
Level 3: Process 5 4.2 Level 3: Process 5 5.0
Level 4: Other Processes Relationship 5 3.9 Level 4: Other Processes Relationship 5 5.0
Level 5: Deliverables 5 5.0 Level 5: Deliverables 5 5.0
Level 6: Quality Control 5 5.0 Level 6: Quality Control 5 5.0
Level 7: Metrics 5 4.0 Level 7: Metrics 5 2.5
Level 8: Client Satisfaction 5 1.3 Level 8: Client Satisfaction 5 1.3
Service Level
Indicators
Service Level Definition Goal Bronce Silver Gold Platinum
Response Time Measures the ability to respond to incidents 97.5% P1: 30 min. P1: 30 min. P1: 30 min. P1: 30 min.
in hours or minutes. P2: 30 min. P2: 30 min. P2: 30 min. P2: 30 min.
P3: 1 hrs. P3: 30 min. P3: 1 hora P3: 30 min.
P4: 1 hrs. P4: 30 min. P4: 1 hora P4: 30 min.
Resolution Time Measures the resolution of incidents in hours 97.5% P1: 4 hrs. P1: 2 horas P1: 4 horas P1: 2 horas
or days. P2: 8 hrs. P2: 6 horas P2: 8 horas P2: 6 horas
P3: 2 Bus. Days P3: 1 Días P3: 2 Días P3: 1 Día
P4: 5 Bus. Days P4: 3 Días P4: 5 Días P4: 3 Días
Number of incidents (or service requests) < 5%
open beyond the limits of SLA * 100 / Total
Open Beyond SLA (%)
number of incidents (or service requests)
received.
SKRUMBAN KPIs To be To be defined To be defined To be defined To be defined
defined
Service Time Window *** 8x5 24x7 (on-call) 8x5 24x7 (on-call)
framework 24x7
Align business priorities with service commitments
Incidents & Support Pareto Distribution
Priority and Resolution Time
>= 50 %
What is a 40 % A week
critical 3 days
incident? 9%
<= 1 % 1 day
4 hours
Volume
Critical High Medium Low Priority
Application Development Methods
Waterfall Agile
iBis
Metrics & KPIs
Metrics & KPIS Iberia Information System

Metrics & KPIs
Keeping the light on
Metrics
• Are the AMS activity measures

• They help to organize the team and distribute the work
• Usually are registered just in time in an ITSM tool ant collected at
the end of the control period
– Number of incidents
– Number of supports
– Registered problems …
KPIs
• Are the AMS trends indicators

• They help to take tactical or strategic decisions
• Usually are calculated at the end of the control period
– Resolution Time
– Respond Time
– Efficiency Factor…
iBis Iberia Metrics & KPIs Management APP V 1.0
GOAL: homogenized and register Services Management Metrics and calculate Tranquility and Productivity KPIs
and have real and critical information to manage the services and contracts renewal.
TARGET: all Iberia APPS Service Line AMS (Each contract)
We want to have a single SITE to

register metrics and calculate KPIs
All APPS Accounts are required to

use it and ensure all metrics and KPIs
are reliable
Power BI will be the tool to explore

and analyze metrics and KPIS trends,
compare between accounts, get
reports to share with clients, etc.
Characteristics: multilingual, security access at account & country level, Power BI reporting, import and export tools.
AMS Activity
Unplanned: incidents (or service requests) Planned: minor, mayor changes
(Enhancements)
Metrics >> Volumetry
Relevant statistical information about the volume of the maintenance work
iBis Metric Description
Created Number of created tickets
Closed Number of closed tickets
Open Number of open or ongoing tickets
Priority Tickets Number of critical (Unplanned) or urgent (Planned) tickets during the month
Open Beyond SLA Number of tickets open beyond SLA limits
Responded on SLAs Number of tickets responded on SLA limits
Closed on SLAs Number of tickets closed on SLA limits
Lead Time (Hours) Average time: date the ticket was created - date the ticket was closed
Metrics Process Time (Hours) Actual effort per ticket (Hours): average time dedicated to solve or develop a ticket
(Unplanned & Actual FTEs Capacity Actual FTEs dedicated to the service
Planned) Estimated FTEs Capacity Estimated FTEs dedicated to the service
Total Actual hours Total actual hours allocated to the service
Total Estimated hours Total estimated hours estimated/billed to the client
Total Pipeline Total pending hours
Total Density Defects hours Total hours dedicated to correct defects after deploy in production
Total Actual Cost Total actual cost of the service
Total Revenue Total revenue of the service
Cost per hour Total actual cost / Total actual hours
KPIs >> Trends
Relevant indicators about the trends of service
iBis Metric Description Target Default
[Monthly Scheduled Application Uptime -Monthly Actual Application Unscheduled Downtime] *
Availability (%) 99,50% 100%
100 / Monthly Scheduled Application Uptime.
Number of incidents (or service requests) open beyond SLA limits * 100 / Total number of
Open Beyond SLA (%) < 1%
incidents (or service requests) created
Time to Respond (%) Number of tickets responded on SLA limits * 100 / Created 97,50%
Number of incidents (or service requests) resolved within SLA limits * 100 / Number of incidents
Time to Resolve (%) 97,50%
(or service requests) resolved
KPIs Unplanned Number of backlog incidents (or service requests) at the end of the reporting period * 100 / (
Number of open incidents (or service requests) carried forward from previous reporting period +
Backlog (%) <10%
Number of incidents (or service requests) received during the reporting period )
(Open*100/Created)
#P1 Tickets (%) Number of incidents(or service requests) that are marked priority 1 <5%
Cost of Quality (%) Total density defects hours (to correct defects) * Cost per hour / Total cost 20-35%
Flow Efficiency(%) Process Time / Lead Time * 100 >= 50 %
[Number of Major, Minor and Urgent CRs delivered –Number of Major, Minor and Urgent CRs
Successful CR implementation >99% 100%
backed out] * 100 / Number of Major, Minor and Urgent CRs delivered
(Total Estimated hours – Total Actual hours ) * 100/ Total Estimated hours
Effort Variance (%) 0 - 10%
*Estimated effort is the time estimated and billed to the client
Schedule Variance (%) (% of Major enhancements, Minor Enhancements & Projects having schedule deviation +/-5% 0%
Cost of Quality (%) Total density defects hours (to correct defects) * Cost per hour / Total cost 20-35%
Estimation Accuracy (Agile) Work accomplished in a Sprint Vs Commitment. (Size completed /Size committed) >80% 100%
KPIs Planned Ratio of ‘Accepted’ User Stories or Enhancements (minor, mayor changes) over the total
Efficiency Factor (%) 80-90%
delivered in each Sprint or Release
Number of tickets( minor/mayor enhancements) open beyond SLA limits * 100 / Total open
Open Beyond SLA (%) <10%
tickets( minor/mayor enhancements)
Number of enhancements (minor, mayor changes) that are marked as urgent P1
#Urgent tickets (%) <5%
Tickets*100/Closed
Flow Efficiency(%) Process Time / Lead Time * 100 >= 50 %
Financial KPIs
Financial Indicators
Focus Area KPI KPI definition Target

Average time taken to resolve a ticket (minor and mayor enhancements - "
Productivity Planned/Unplanned Effort per ticket <5% YoY
Evolutivos")
Productivity Planned/Unplanned Cost per ticket (€) Average cost per ticket (minor or mayor enhancement) <5% YoY
Productivity Planned/Unplanned Revenue per ticket (€) Average revenue obtained per ticket (minor or mayor enhancement) >5% YoY
Productivity Planned/Unplanned Margin per hour (€) (%) (Revenue per hour – Cost per Hour) / Revenue per hour >=18%
Productivity Planned/Unplanned Margin per ticket (€) (%) (Revenue per ticket – Cost per ticket) / Revenue per ticket >=18%
Productivity Planned/Unplanned Capacity Utilization (%) Capacity Actual FTEs (Hours) / Capacity Estimated FTEs (Hours) 90 - 100%
Productivity Planned/Unplanned Cost of Quality (%) Total density defects hours (to correct defects) * Cost per hour / Total cost 20-35%
Productivity Planned/Unplanned AOP (%) (Total Revenue – Total Cost ) / Total Revenue >=18%
Account Profit AOP (%) (Total Account Revenue – Total Account Cost ) / Total Account Revenue
Relevant Metrics & KPIs
This metrics usually impact the AOP (Account Operational Profit)
iBis Description Why is important?

AOP Calculation (** AOP must be the one reported
Total Revenue Planned & Unplanned
for Account Financial Control)
AOP Calculation (** AOP must be the one reported
Total Cost Planned & Unplanned
for Account Financial Control
Actual capacity FTEs For capacity use control
Metrics
Available capacity FTEs For capacity use control
Lead Time & Process Time Planned & Unplanne For operational control
AOP Calculation AOP must be calculated for Unplanned & Planned Areas
Unplanned Example Non-Labor Costs: Licenses, Trips, others, etc.
Activity Driver = Activity Hours Service Non-Labor Costs

Cost Sharing Rate 10.000 €
1.250 Hours Unplanned

1.250 Hours => 35.7 % 10.000 € * 35.7% = 3.571,4 €
2.250 Hours Planned
2.250 Hours => 64.3 %
3.500 Total Hours
Revenue Labor Costs Non-Labor Costs

50.000 € 32.000 € 3.571,4 €
Full Costs
35.571,4 €
AOP = (Revenue – Costs) / Revenue
AOP = (50.000 – 35.571,4) / 50.000 = 28,9 %
Capacity
Capacity Definition
Number of FTEs for Planned & Unplanned areas at the
Estimated Capacity
beginning of the period
Number of allocated FTEs for Planned & Unplanned areas at

Actual Capacity
the end of the period
% of Capacity Utilization Actual Capacity / Estimated Capacity

Number of persons we are sharing with other accounts over
% of Leveraged Capacity
the total team members
To improve proceptivity is important to

leverage resources with a competitive rate.
SKRUMBAN
Lead time vs. process time of a development operation
Lead Time
Ticket Work Work

Created Started Completed
Process Time
Process Time & Lead Time
Lead Time (Life Cycle)
Sprint Time (Development Cycle)
Planificat
JIRA Status JIRA Status
▪ Obert ▪ Valoració solicitada
JIRA Stauts Estados Jira
▪ Pending info ▪ Facturat
▪ En valoració ▪ En resolució * Impediment * Proves usuari * Desplegament * Tancat
Estudio de ▪ Valorat
▪ Valoració Aceptada
Viabilidad
2 Semanas
▪ Pruebas
▪ Defectos
2,1 Días 7,28 Días 1,26 Días 2,35 Días
*** Gestión demanda
Tiempo
13/Julio 16/Julio 23/Julio 24/Julio
Entrada en
en Backlog Análisis Desarrollo Pruebas Despliegue
Product
Backlog
Process Time (Tiempo de Proceso)
What a long Lead Time tells us?
Cause Impact Remedy
Delays
Multitasking Bad quality SkrumBan
Overloaded team
Delays
Bad quality Requirement definition and checking of
Bad requirements definition
User claims viability validated by users
Rework
Bad demand planning Delays and delivery failures SkrumBan
Multitasking
Implement a clear process od Change
Bad change management Rescheduling
Management
Delays
Many waste elements in the Long development cycles
Eliminate waste elements (Lean IT)
processes Delays
Regular Unplanned KPIs >> Regular AMS model
KPI Target Definition
Successful CR implementation >99% Number of changes correctly implemented
Effort Variance (%) 0 - 10% Variation of the estimated effort vs the actual effort
Schedule Variance (%) +/-5% Variation of the scheduled plan vs the actual plan
Cost of the changes, repairs, or support due to error during

Cost of Quality (%) 20-35%
the development cycle and after deployment
Quality save money!
Regular Planned KPIs >> Regular AMS model
KPI Target Definition
Time to Respond (%) >= 90 % Number of tickets responded on SLA limits * 100 / Created
Number of incidents (or service requests) resolved within

Time to Resolve (%) >= 90 % SLA limits * 100 / Number of incidents (or service requests)
resolved
Backlog (%) <=10% % of open tickets at the end of the period
Number of incidents(or service requests) that are marked

#P1 Tickets (%) <= 1 %
priority 1
It is very important to define What is

critical?
Agile KPIs >> Our Iberia SKRUMBAN Model
KPI Target Operational Goals

Velocity Continous Improvement A stable pace of delivery
(Number of user stories (enhancements) delivered in each Sprint)
Flow Efficiency
(Process Time / Lead Time) >=80% Reduce the Lead Time
Efficiency Factor (%)

(Number of user stories (enhancements) accepted in each Sprint) >=80% Increase the productivity
Defects Density Reduce defects / Improve

<=10%
(% of hours dedicated to repair defects / Total hours of the Sprint) Quality
Stability, get the right pace is the most important

Lessons learnt

AMS lessons learnt- my vision
Key points to win Government Invest, save time and money
✓ Price and competitive market position
✓ Reputation ✓ AMS Government is required and ✓ Automation, AI, Data Government
✓ Capacity: nearshore is key for some Spanish ✓ Agile practices
key for success. It is a myth that you ✓ Innovate
customers
✓ Capabilities: innovation, legacies knowledge and can cover a management position
transformation projects to modernize APPS with a “smart” and “committed”
✓ Digital Vision: realistic, adapted by sectors. technical profile.
BANKS priorities are not the same for Retails,
Automotive, etc.
Multisource strategy AMS moved from Time & SLAs

✓ Splitting up services by technology, APPS, Material to AM as a Service ✓ In most of the cases are difficult to achieve due to
regions, etc. and asking different providers for high levels or structural conditions, and penalties are
those delivery services under a prime contractor ✓ But customers continue to act as if the teams sometimes a medium to reduce the cost. Those SLAs
or single contractor for each area of services. were contracted in T&M with operational rarely achieve the goal to improve quality, but
APPS and Technology complexity an consequences derived from this bad practice. difficulties to fulfilled the contract cause conflicts and
organizational constraints make things hard to get teams become frustrated and demotivated.
done.
Maintain some incumbents Virtual Nearshore centers Moving to AGILE

✓ Customers use to require to maintain some ✓ Services from near short centers get customers
incumbents due to their business and legacies confident particularly with security and data ✓ Moving to AGILE frameworks require to push as
knowledge and that create dependencies for protection, among others. work collaboration culture putting together users,
providers and higher costs. Some competitors use ✓ Spanish labor costs as a competitive advantage developers and infrastructures engineers, and a
to have short term and aggressive plans to ✓ Language barrier in Spain. I.e., Telefonica, SEAT. closed and flexible relationship. Many customers are
change the pyramid of resources and limit the not prepared for this or do not have a digital
incumbent retention to specific persons or agree strategy, whish otherwise could be a great business
plans to substitute rationally this key people. opportunity.

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AMS Webminar

To the next AMS Generation

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AMS Webminar Speaker

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Application support and maintenance

A typical large enterprise today spends up to

Transformative, outcome-based services

To be more efficient To be more relevant

Enhanced automation Speed up innovation

Minimizing human involvement Focusing human

Budget being squeezed Budget demands are constantly growing

RUN the business CHANGE the business

Budget challenges given Complex transformation

High cost of automating Competitiveness dependent

Proprietary technologies Capacity to meet demand

Applications Management Services Market

© 2021 DXC Technology Company. All rights reserved.

AMS Trends – Customers Perspective

AMS Trends – Customers Perspective

AMS Trends – Customers Perspective

Pricing models Global sourcing gaining

Analytics Manufacturing 2.0

Garner, trends 2021

Applications Management Services Market

© 2021 DXC Technology Company. All rights reserved.

AMS has evolved from cost cutter to transformation partner

AMS gets agile

▪ Applications are moving to the cloud.

AMS gets intelligent & automated

Spending on application management

Grand View Research valued the global

According to Technavio, the global AMS

❖ Areas of IAAS (Infrastructure as Service)

Applications Management Service

© 2021 DXC Technology Company. All rights reserved.

AI used for operational

services Customer experience measured &

Application Management Maturity

Flexible and scalable delivery models

Application Development Application Maintenance

Team Activities Activities Team

▪ Executive follow up ▪ Service status review

▪ Strategic or tactical actions review ▪ Service status review

▪ Retrospectives Bi-weekly ▪ Sprint Review

▪ Demand Management Bi-weekly ▪ Planificar la demanda y alinearla con la capacidad

Agile for AMS

© 2021 DXC Technology Company. All rights reserved.

01 Single Service Government

A Single Government to achieve an Overall Operations

We need to be competitive through a Leveraged Resources

dimensions: persons, processes, technology and

To adopt an agile and collaborative culture, and transform

1 Up to 3 months 1 up to 2 months 3 up to 6 months

Agile practices SCRUM KanBAN

Deliverables At the end of the Sprint Continous Delivery

Cultural change Changes are welcome No changes during the Sprint

Product Backlog Sprint 2 Weeks

Analysis Build Tests Deploy Close

Analyze the Develop the Do the users Deploy into ▪ Verify if

Operational Goals KPI Target Result Status

Efficiency Factor (%)

Reduce defects & Improve Defects Density

Accelerate the go to production